“The earnings are good -- not phenomenal, but good,”
Arthur Salzer, chief executive officer of Northland Wealth
Management in Toronto, said in a telephone interview. The firm
oversees about C$200 million ($198 million). “And any time you
bring down interest rates to the low levels there are, any risk
assets become a lot more attractive.”

The index had slipped this week after surging 5.4 percent
in October as Greek Prime Minister George Papandreou said he
will subject his country’s bailout plan to a referendum. The
S&P/TSX is set to underperform the S&P 500 for the first year
since 2003 as energy stocks have declined on concern the global
economy will slow. Canada is the world’s sixth-largest oil
producer, according to the U.S. Energy Department.

Unexpected Cut

The ECB lowered its main refinancing rate to 1.25 percent
from 1.5 percent. Among 55 economists in a Bloomberg News
survey, six had forecast a cut. Stocks extended their gains
today after Greek Finance Minister Evangelos Venizelos said the
country won’t hold the referendum.

Canadian Natural gained 9.3 percent to C$38.23 after
reporting third-quarter earnings that beat the average estimate
of analysts in a Bloomberg survey by 19 percent, excluding
certain items. Suncor Energy Inc. (SU), the country’s largest oil and
gas producer, rose 4.4 percent to C$33.20 after its profit
excluding certain items topped the average analyst estimate by
39 percent.

Valeant surged 13 percent, the most since January, to
C$44.08. SXC Health Solutions Corp. (SXC), a pharmacy-benefits
manager, jumped 6 percent to C$47.99 after beating the average
analyst estimate for third-quarter adjusted earnings by 2.3
percent and raising its 2011 forecasts for earnings and revenue.

Surpassing Estimate

Dundee Precious Metals Inc. (DPM), which operates in Bulgaria and
Armenia, rallied 12 percent, the most since October 2009, to
C$8.91 after surpassing its average profit estimate by 24
percent, excluding certain items.

Among companies that missed analysts’ earnings estimates,
Sun Life Financial Inc. (SLF), Canada’s third-largest insurer, fell
4.8 percent to C$22.85, the lowest in 31 months, after reporting
its first quarterly loss in two years. Manitoba Telecom Services
Inc. (MBT), a Winnipeg, Manitoba-based phone company, sank 7.2
percent, the most since August 2010, to C$30.37 after missing
the average forecast by 10 percent.

Industrial Alliance Insurance and Financial Services Inc.
lost 6.8 percent to C$26.80, the lowest since July 2009, after
analysts at BMO, Canaccord Financial Inc. and National Bank of
Canada cut their ratings on the company. The shares plunged 11
percent yesterday after the insurer’s earnings missed the
average analyst estimate by 31 percent, excluding certain items.

Gold Surge

Gold stocks in the S&P/TSX climbed as the metal advanced to
a six-week high after the ECB decision.